Legacy Distribution Group, Inc.
08 February 2007
Legacy Distribution Group, Inc.
(the 'Company')
This announcement is provided by way of an update to the announcement made on 31
January 2007.
The directors of the Company ('Directors') in conjunction with the Company's
principal bank, the lead creditor, have reviewed the Company's financial
position. They have concluded that the business is no longer viable and cannot
be sold as a going concern. The bank assisted by an officer of the Company has
received offers of interest to purchase the assets of the Company and the bank
has now commenced proceedings to exercise control over its collateral in order
to pursue these offers. Under this process, assets will be realised and
distributed for the benefit of the bank, as the leading secured creditor.
The value of these offers will result in the bank incurring a substantial loss
and as a result unsecured creditors and shareholders will not receive any
payment.
In view of this action and after discussion(s) with the bank, the Directors have
concluded that there is no further useful role that they can perform for and
within the Company. Accordingly, Michael Mills and Ian Blelloch, the
Non-Executive Directors and Fred Gretsch the Company's Chief Financial Officer
have resigned as Directors and Officer of the Company with immediate effect.
This information is provided by RNS
The company news service from the London Stock Exchange